Thursday, 5 November 2009

Will Avon's ladies lure the Latins?

A post earlier today in Fashionista-at-Law warns that veteran cosmetics company Avon is setting its sites on Latin America. Citing Brand Channel as its source, Fashionista says:
"After seeing its sales take a bit of a battering in North America and China, Avon has been refocusing on sales to the cash-strapped by (i) promoting lower-priced products, and (ii) heavily targeting Latin America, where, the company says, people spend a high proportion of their income on beauty products".
IP Tango says that Avon should beware. The fact that Latin American consumers spend a high proportion of their income on beauty products doesn't mean that they are going to provide the cash expenditure to bring the Avon brand out of its doldrums: if you're spending a high proportion of your income on cosmetic products, the explanation might either be that you love the luxury of these products -- or that you're not earning so very much in the first place.

No comments: